New fiber optic agreement for Telia worth USD 40 million

Telia and 360networks (formerly Worldwide Fiber Inc.) have signed an agreement to increase their investment in fiber optic infrastructure and network plant in Europe and North America. The new agreement, worth about USD 40 million (SEK 365 million), covers a 20-year period. Including the new agreement, the value of joint venture business between Telia and 360networks now totals close to USD 100 million (slightly more than SEK 915 million).
With the new agreement, 360networks will purchase more fiber pairs in Telia's existing networks and in the new section Munich-Vienna-Milan, scheduled for completion in 2001. This is the third agreement that Telia has reached in the United States and is completely in line with established strategies for international carrier business. With the new agreement, Telia will proceed with its planned investments in North America, which includes an option on the right to buy fiber networks in Canada from 360networks. "The expansion of our joint venture with 360networks is a natural consequence of our agreement of January this year and confirms Telia's position in the important North American market," says Lars-Erik Åberg, acting President of Telia International Carrier. "It is also proof of Telia's know-how and good reputation as a provider of high-quality network configurations." In terms of kilometers, Telia will provide 360networks with 7,700 km of fiber cable interconnecting the United Kingdom, France, Germany, the Netherlands, Austria, Italy and the Nordic countries. Telia will also be responsible for co-location services and maintaining the fiber optic network.

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